Ether (ETH) continued its stellar run and broke the $ 3,500 barrier today. Dogecoin (DOGE) also joined in the fun as its price climbed above $ 0.61 earlier today as Gemini traded additional support for the coin following a similar milestone. by eToro.
Traders can buy DOGE in the hopes that Elon Musk dumps the token when he next appears as the host of Saturday Night Live.
While DOGE’s rise to power is tempting, traders should be careful with their bets because unless some popular individuals are jaw-dropping, the fundamentals of the coin appear fragile.
Although altcoins have a day in the field, Glassnode recently pointed out that Bitcoin (BTC) Stablecoin’s supply ratio plunged to a 2021 low at 13.4. The SSR is calculated by dividing the supply of Bitcoin by the supply of stable coins and its all-time low is 9.6. Glassnode said the low value of SSR was a bullish sign, as it showed greater availability of crypto-native capital that could flow into Bitcoin and other crypto-assets.
In the altcoin season, the decentralized financial space has been in the spotlight. Let’s take a look at the fundamentals and techniques of three DeFi-related tokens that have worked well over the past few days.
GNO / USD
Decentralized exchanges have grown in popularity over the past few months, but they still suffer from some shortcomings. One of the issues that DEX users face is the bots that execute upstream transactions and cause slippage. According to MEV-Explore, more than $ 477 million has been mined from DEX traders since January 1, 2020.
To solve the MEV problem and improve the DEX user experience, Gnosis (GNO) recently announced a partnership integration with Balancer to form the Balancer-Gnosis-Protocol, which plans to mix the pool mechanisms of Balancer with the mechanism. Gnosis Prize Research and is expected to go live in mid-June. This could attract several traders who avoided trading on DEX due to MEV.
During bull markets, several new projects are announced as the appetite of traders is high. However, finding the price of a new token has been a major issue bogging down the crypto space. To address this issue, Gnosis launched a new platform dubbed Gnosis Auction on April 6. The protocol claims that the platform will conduct transparent and decentralized batch auctions for any Ethereum project.
TUSEN Markets Pro’s VORTECS ™ data began to detect a bullish outlook for GNO on April 28, ahead of the recent price hike.
The VORTECS ™ Score, exclusive to TUSEN, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trade volume, recent price movements and Twitter activity .
As shown in the graph above, the VORTECS ™ score for GNO turned green on April 28 when the price was $ 201.15.
From then on, the VORTECS ™ score has remained consistently in the green except for a brief period and GNO peaked at $ 258.70 today, giving traders a 28% return in about seven days.
GNO has been in a steady uptrend, rising from $ 171.32 on April 25 to an intraday high of $ 261.30 today, up 52% in ten days. This strong rally in recent days has pushed the Relative Strength Index (RSI) into overbought territory.
Usually, when an asset is supported by momentum, it doesn’t give up much ground during corrections. The bulls jump and buy every minor drop as they expect the rally to continue. The first downside support is $ 224.07 and then the 20-day exponential moving average ($ 206).
A strong rebound on either support will suggest sentiment remains positive and traders are buying if there is a dip. The bulls will then try to resume the bullish movement and push the GNO / USD pair towards the next target goal at $ 282.54, then $ 300.
This bullish view will be invalidated if the price drops and falls below the 20 day EMA. Such a move will suggest that traders are profiting aggressively, which could bring the price down to the 50-day simple moving average ($ 174).
BAL / USDT
Automated Marketplace maker Balancer (BAL) announced the developer launch of its next big upgrade named Balancer V2 on April 20. The major change in the new version is that all assets added by all Balancer pools will be kept in a single vault.
While the AMM logic will be unique for each pool, the token management will be performed by the vault. The protocol says this will improve gas efficiency and allow for the drafting of various AMM strategies “without having to worry about low-level token transfers, balance accounting, security checks and intelligent order routing.” “
Balancer’s partnership with Gnosis will form the Balancer-Gnosis-Protocol which will be interoperable with any DEX but will have maximum gas efficiency when traded for pools of Balancer. Steps taken to reduce gas costs and improve the user experience can give Balancer an edge over its competitors.
The protocol also promotes its liquidity seed pools for projects that wish to distribute tokens in a fair and capital efficient manner.
BAL rose from $ 44.73 on April 25 to an intraday high of $ 75.08 today, rising more than 67% in ten days. During this period, the price moved from the support line of the ascending channel to the resistance line of the channel.
The bears have defended the chain resistance line twice, therefore the level is likely to act as a major obstacle again. A drop from the current level will likely find support at the 50-day SMA ($ 56.47).
Both moving averages gradually increase and the RSI is above 61 suggesting that the bulls have the upper hand. If the price rebounds from the moving averages, the bulls will make another attempt to push the price above the channel.
If they are successful, the BAL / USDT pair could gain momentum and move towards the next target target at $ 100. Bullish momentum may weaken if the pair falls below the moving averages. A break under the fairway will signal an advantage to bears.
CAKE / USDT
PancakeSwap (CAKE) was featured on TUSEN on April 8 as it traded at $ 20.91. From there, the token rallied to reach an all-time high of $ 44.27 on April 30, recording a 111% gain in just over three weeks.
The protocol launched a self-composing CAKE syrup pool on April 30, which eliminates the need to manually re-implant CAKE to achieve the best yields. The new feature appears to have gained popularity among users as the protocol reported on May 3, 18.5 million CAKE tokens had been deposited in said pool.
Recently, data from DappRadar showed that PancakeSwap made 2 million transactions in 24 hours surpassing the 1.55 million transactions made on the Ethereum network. The growing popularity seems to have enabled the protocol to complete its the biggest burn 5,143,789 CAKE tokens.
PancakeSwap launched the BETA version of Prediction on April 28. This allows traders to bet on the direction of the BNB / USDT pair close at the end of a 5 minute live phase. If the chosen direction is correct, the trader earns a reward.
While professional short term traders can be successful in such predictions, novice traders should be careful as it could get addicting and one could quickly lose a lot of money in a short time.
The last stage of CAKE’s rally had pushed the RSI above 81 on April 29, indicating that the token was overbought in the near term. This could have attracted profit reservations from momentum traders leading to the current correction.
The first critical support on the downside is the 20-day EMA ($ 32.75). The bears have not been able to move down and close the price below this support since March 23. Therefore, the bulls are likely to buy the pullback towards the 20-day EMA.
A strong rebound from this support will suggest sentiment remains positive. The bulls will then try to push the price above $ 44.27 and resume the uptrend. If they are successful, the CAKE / USDT pair could climb to $ 55.
Contrary to this assumption, if the bears cause the price to drop below the 20-day EMA, it will suggest that traders are profiting aggressively. This could bring the price down to the $ 30 breakout level.
The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of TUSEN. Every investment and trading move comes with risk, you should do your own research when making a decision.